Corporate Value Initiatives

Corporate Value Initiatives Our vision is to be the world s most trusted financial group. We explain how each business group creates value in their efforts to reach this vision. 24 Business Group Strategies * 24 Retail Banking Business 28 Domestic Corporate Banking Business 32 Global Business 36 Trust Assets Business 4 Global Markets Business 44 Special Feature: Becoming a Leading Financial Group in Asia 46 Special Feature: Strategic Alliance with Morgan Stanley * Financial data in this section is based on managerial basis. 22 MUFG Report 215

Corporate Value Initiatives MUFG Report 215 23

Business Group Strategies Retail Banking Business We provide a wide range of products and services to meet the needs of individual customers from housing loans to asset management, inheritance and consumer finance. Composition of Gross Profits* Gross Profit Breakdown 3% 1,311.3 billion * Gross profit total for five business groups Consumer finance and card 39% Loans and yen deposits 24% Investment product sales 15% Securities business* 11% Inheritance and real estate 1% Other 1% * Fees and commissions on stocks and bonds, etc. Fiscal 214 Earnings Summary Gross Profits 1,311.3 billion Net Operating Profits 347.1 billion up 1% up 4% Retail Banking Business Group gross profits rose 1% ( 15. billion) over the previous fiscal year to reach 1,311.3 billion. Net operating profits rose 4% year on year ( 12.7 billion) to reach 347.1 billion. Revenue from loans and deposits declined, but this was covered by investment product sales and consumer finance. Gross Profits and Net Operating Profits Our Group companies are working as a unified whole to deliver the best for customers. Takahiro Yanai Managing Executive Officer Group Head, Retail Banking Business Group 1,4 1,2 1, FY 212 213 214 Gross profits (left axis) Net operating profits (right axis) 5 4 3 24 MUFG Report 215

Investment Product Sales Customer Base, Asset Scale and Revenue all Growing In aiming for sustained growth in its investment product sales business, MUFG seeks a balance between its base (number of accounts, etc.); asset scale (assets under management from customers) and revenue. In fiscal 214, we saw growth in the base (number of Nippon Individual Savings Account [NISA] accounts opened); as well as the amount of assets under management (Asset Scale) along with revenue. No. of NISA Accounts Requested (Cumulative Total) Thousands of accounts Base 9 791 7 5 475 Assets Under Management* Trillion of Yen 28 27 26 25 25 27 Asset Scale Investment Product Sales Revenue 2 195 19 185 193.4 197.5 Revenue Corporate Value Initiatives Mar 31, 214 Mar 31, 215 Mar 31, 214 Mar 31, 215 FY 213 FY 214 * Total for Bank of Tokyo-Mitsubishi UFJ, Mitsubishi UFJ Trust and Banking Corporation and Mitsubishi UFJ Morgan Stanley Securities. Excludes yen accounts. Consumer Finance and Card Business Revenue Growth as Card Loan Balance and Card Transaction Volume Increases In consumer finance business, both balances and revenues are growing in ACOM card loan business and BANQUIC business (the consumer finance products provided by Bank of Tokyo-Mitsubishi UFJ). Card business transaction volume is growing and revenue is up on an increased use of revolving and installment payments. Consumer Finance and Card Business Revenue 55 5 485.2 511.8 45 FY 213 FY 214 Inheritance and Real Estate Inheritance Trust Balance Rising Steadily We focused on the development and sale of various products which can take advantage of legal changes related to inheritance and donations. Our real estate brokerage business performed well. Executable Testamentary Trust Asset Balance Trillions of Yen 7.5 7. 6.8 7.1 Inheritance-Related Revenues and Real Estate-Related Revenues 16.5 16. 16. 16.2 6.5 15.5 Mar 31, 214 Mar 31, 215 FY 213 FY 214 MUFG Report 215 25

Business Group Strategies Retail Banking Business Our Long-Term Vision Retail Banking Business Group Our Long-Term Vision The Top Financial Group Chosen by a Wide Variety of Customers Spanning the Generations Business Environment MUFG Strategy Decreasing birthrate and aging population Income and asset polarization ICT evolution and penetration Long-term asset management and succession needs growing Borrowing needs expanding Settlement methods diversifying, growth of cashless society Asset Management Business Asset Succession Business Promoting a shift from saving to investment; revitalizing personal consumption Settlement Business Consumer Finance Projected Business Environment and Management Strategy In Japan, the trend toward a decreasing birthrate and aging population is deepening, and it is predicted that in ten years time 3% of the population will be over 65. We are also seeing a polarization of income and assets while the spread of information and communications technology (ICT) is bringing a diversification of settlement methods. In this environment, we see MUFG contributing to sustained economic growth in Japan in two ways. Firstly, by promoting a move to investments from savings through the asset management business, and promoting the circulation of funds in the economy. Secondly, by revitalizing personal consumption through our settlement and consumer finance business. We aim to become the top financial group in the retail business segment, chosen by a wide variety of customers with our business spanning the generations. Demographic Structure of Japan % 1 75 5 25 2 and under 2-64 Increase to about 3% 65 and over FY 8 1 12 14 16 18 2 22 24 Source: Ministry of Internal Affairs and Communications Population Estimates; National Institute of Population and Social Security Research Population Projections. 26 MUFG Report 215

Medium-Term Business Plan (Fiscal 215-217) By promoting the shift to investments from savings and revitalizing personal consumption, we aim to expand our customer base, strengthen our stock business (increase our assets under management) and ultimately grow our revenues in a balanced drive for growth. Net Operating Profit Plan *1 Assets Under Management *2 34.6 billion +17% *1 Based on managerial accounting basis to apply from fiscal 215 Forex rate applied to business plan is 115/US$ 27 trillion +24% 33 trillion FY 214 FY 217 (plan) Mar 31, 215 Mar 31, 218 (plan) *2 Total for Bank of Tokyo-Mitsubishi UFJ, Mitsubishi UFJ Trust and Banking Corporation and Mitsubishi UFJ Morgan Stanley Securities Excludes yen deposits Strategy Focus Asset Management NISA promotion Investment products that support medium- to long-term asset formation Reconfigure investment product sales structure Asset Succession Expand new product lineup Group-wide total asset consulting approach from the perspective of asset succession Settlement (cards) Provide multiple settlement formats Strengthen transactions with corporations Consumer Finance Expand customer base Corporate Value Initiatives FOCUS Meeting Total Asset Needs Not Limited to Financial Assets Customer asset needs are becoming more sophisticated and diverse, from asset formation through to effective utilization and smooth arrangements for succession. To meet these needs, total asset consulting, which includes non-financial assets like real estate, is becoming more important. MUFG is able to leverage the knowhow and expertise of its Group companies in banking, trust, securities and real estate brokerage to deliver a total asset approach based on its comprehensive financial group power. Asset Management Own Company Stock Measures Customer Wills Real Estate and Own Financial Assets Company Stock, etc. Total Assets Loans Inheritance Real Estate Brokerage MUFG Report 215 27

Business Group Strategies Domestic Corporate Banking Business We provide lending, settlement, forex, and asset management services to meet the diverse needs of our clients, through our domestic and overseas networks. We also utilize our Group-wide expertise to propose solutions for client s business strategies and challenges. Composition of Gross Profits* Gross Profit Breakdown 22% 965.2 billion * Gross profit total for five business groups Investment banking 37% Deposit and lending 33% Settlement 19% Other 11% Fiscal 214 Earnings Summary Gross Profits 965.2 billion Net Operating Profits 517.1 billion up 4% up 7% Gross profits rose 4% year on year ( 41.2 billion) to 965.2 billion. Net operating profits were up 7% year on year ( 31.6 billion) to 517.1 billion. Net interest income fell on a contraction in lending spreads as well as a decrease in deposit revenues on lower interest rates. However, this was covered by an increase in revenue from fees and commissions, and overall profits rose. Gross Profits and Net Operating Profits We contribute to our clients growth through providing the best solutions to their diverse needs ranging from management issues to business strategies. Hidekazu Fukumoto Senior Managing Executive Officer Group Head, Corporate Banking Business Group 1, 9 8 FY 212 213 214 Gross profits (left axis) Net operating profits (right axis) 6 5 4 28 MUFG Report 215

Earnings Highlights Loan Balance Up and Investment Banking Revenue also Increasing The domestic corporate average loan balance (excluding government) rose 5% year on year ( 2.1 trillion). This reflected our initiatives such as fund demand creation and responding to event finance including M&A finance. Investment banking revenues* rose as we provided our customers with high-value-added proposals to meet their challenges, and forex revenue also grew as we met transaction needs in a rapidly changing market. * Revenue from structured finance, syndicated loans, derivatives. Breakdown of Change in Gross Profits 1, 95 9 924. Loans and deposits (27.8) Settlement +9.8 Investment banking +51.5 Other +7.8 965.2 Domestic Corporate Average Loan Balance Trillions of Yen 5 4 3 39.5 41.2 43.2 Corporate Value Initiatives FY 213 FY 214 FY 212 213 214 Large Corporate Business Maintaining Our Leading Presence in the M&A Advisory and Project Finance League Tables As we make various proposals to our clients for further enhancement of corporate value, MUFG ranks second among Japanese financial institutions in cross border M&A advisory business. Continuing from 213, MUFG is ranked number one globally in project finance (origination volumes) on strong performance in electric power, resource and infrastructure projects. M&A Advisory (cross-border projects/transaction value base)* (April 214-March 215) Ranking Advisor Transaction Value () 1 Mizuho Financial 2,965.9 2 Mitsubishi UFJ Morgan Stanley Securities 2,689.7 3 Nomura 2,447.7 Source: Thomson Reuters (data compiled by Mitsubishi UFJ Morgan Stanley) Project Finance (global ranking, based on funds raised) (January-December 214) Ranking Arranger Origination volumes (Millions of US Dollars) 1 MUFG 16,227 2 SMBC 13,451 3 Mizuho Financial 9,848 Source: Project Finance International Magazine * Any Japanese involvement announced including property acquisitions. Mitsubishi UFJ Morgan Stanley includes deals advised by Morgan Stanley. SME Business Promoting a Solution Providing Approach Our SME customers needs are diversifying from fund raising and business succession to sales channel expansion. We respond with order-made support and meticulously planned proposals, resulting in growth for both loan balances and fee and commission revenue in a tough competitive environment. See pages 76-77 for details on our support to SMEs. MUFG Report 215 29

Business Group Strategies Domestic Corporate Banking Business Our Long-Term Vision Domestic Corporate Banking Business Group Our Long-Term Vision Supporting Growth and Providing Value Beyond Expectations: We Aim to Be Our Customers First-Choice Financial Institution Business Environment MUFG Strategy Companies increasingly globalized and industry structures changing Company management is aging Companies maintaining more internal reserves Company overseas business needs expanding Greater M&A needs Business succession needs growing Corporate asset management needs rising Strengthen domestic business base Supporting growth and providing value beyond expectations Establish new business model Projected Business Environment and Management Strategy The globalization of Japanese companies is proceeding apace and we expect overseas expansion to extend to an increasing number of SMEs. We project the number of corporate M&A deals to increase in certain sectors as companies attempt to become more globally competitive. The aging trend among Japanese management is accelerating and as the economy improves, we forecast that some companies will expand internal reserves. MUFG perceives these changes as an opportunity and through the strengthening of our domestic business and establishment of a new business model, we intend to contribute to our clients growth and deliver new value beyond their expectations, becoming their first choice as a financial institution. Japanese Company Business Expansion Overseas No. of Japanese Companies with Local Affiliates by Region Thousands of Companies 3 25 2 15 Increasing 1 5 CY 1 2 3 4 5 6 7 8 9 1 11 12 13 Americas Asia Europe and Middle East, etc. Source: Ministry of Economy, Trade and Industry, Basic (Trend) Survey of Overseas Business Activities 3 MUFG Report 215

Medium-Term Business Plan (Fiscal 215-217) We aim for sustained growth based on the basic policies set out below and in line with the direction of strengthening our domestic business base and establishing a new business model. 1 Contributing to 2 Supporting 3 Providing Japan s economic companies overseas new valuerevitalization growth added service Net Operating Profit Plan* 493.2 billion +5% Average Loan Balance for SMEs +5% 15. trillion 14.3 trillion Strategy Focus Large Corporations Promoting sector-by-sector approach Higher level of overseas business SMEs Strengthening base transactions (loans, settlement) Promoting support for growth companies Enhanced support on business succession Establishing corporate asset management business Corporate Value Initiatives FY 214 FY 217 (plan) FY 214 FY 217 (plan) * Based on managerial accounting basis to apply from fiscal 215 Forex rate applied to business plan is 115/US$ FOCUS Supporting the Development of Next-Generation Core Industries The Industry Design Office is a new strategic team formed by Bank of Tokyo-Mitsubishi UFJ and Mitsubishi UFJ Capital, designed to support the creation of nextgeneration core industries. The objective is to support the growth of key sectors and industries that will form the core of the future Japanese economy, enlisting not only MUFG Group companies but also outside experts. The intention is to make this an MUFG business pillar in the long term. Main Initiatives Discovering the seeds of innovative technology Analyzing industry prospects as technology seeds are applied in business Developing CEO talent to continue innovation and supporting commercialization on a global basis We will promote a value chain which discovers growth companies; develops innovative technology; provides business expansion chances; and offers an exit strategy. Industry Development Value Chain Management (growth) support Provision of Discover Development business Exit chances Large company R&D Venture capital Rise Up Festa* Analysis of industry innovation prospects Supporting global business development Developing management resources M&A IPO Client introduction * Please see page 76 for details on Rise Up Festa. MUFG Report 215 31

Business Group Strategies Global Business We respond to the funding needs of corporate customers around the world as well as providing cash management and advisory services. We also provide retail service in the United States and Thailand. Composition of Gross Profits* Gross Profit Breakdown* 3% 1,351.3 billion * Gross profit total for five business groups Americas 5% Asia 22% Bank of Ayudhya (Krungsri) 18% Europe, Middle East, Africa 1% * Prior to adjustment for other business and overlap between regions Fiscal 214 Earnings Summary Gross Profits 1,351.3 billion Net Operating Profits 588.6 billion up 43% up 56% Gross profits rose 43% year on year ( 47.5 billion) to 1,351.3 billion due to the consolidation of Bank of Ayudhya (Krungsri) as well as forex impact and rises in net interest income and fee income. Net operating profits were up 56% year on year ( 211.6 billion) to 588.6 billion. The average loan balance increased 33% ( 1 trillion) to 4.8 trillion, with the average deposit balance up 38% ( 7.3 trillion) to 26.5 trillion. By establishing a strong presence in every region of the world, we aim to be the First Call Bank for clients. Takashi Morimura Senior Managing Executive Officer Group Head, Global Business Group Gross Profits and Net Operating Profits 1,5 1, 5 9 6 3 Fiscal 214 Average Loan Balance and Average Deposit Balance Trillions of Yen 5 4.8 trillion 4 26.5 trillion 3 2 1 FY 212 213 214 Gross profits (left axis) Net operating profits (right axis) Average loan balance Average deposit balance Americas Asia Bank of Ayudhya (Krungsri) Europe, Middle East, Africa 32 MUFG Report 215

Regional Highlights Asia (Asia, Oceania, East Asia) With the economic growth of Asia, profits steadily increased on expanding lending business with global corporates (non-japanese companies). Americas Profits were strong, helped by the recovering United States economy. Net Operating Profits +31.3 2 167.1 135.8 1 FY 213 FY 214 Net Operating Profits +52.1 3 258.8 26.8 15 FY 213 FY 214 Corporate Value Initiatives Net Operating Profits (.3) 7 65.6 65.3 6 Net Operating Profits Consolidation 15 116.6 1 5 FY 213 FY 214 FY 214 Europe, Middle East, Africa Our revenues have grown, mainly in corporate & investment banking despite the following negative factors: the stagnating European economy and economic situation in Russia. Net operating profits were broadly flat. Bank of Ayudhya (Krungsri) Bank of Ayudhya was consolidated on the P/L statement from fiscal 214 and has had a positive net operating profit impact of 116.6 billion. TOPICS Aiming for the United States Top Ten Integrating Americas Business In July 214, Bank of Tokyo-Mitsubishi UFJ and MUFG Union Bank integrated operations for Americas business. MUFG Union Bank offers a wide range of financial services from retail to corporate banking mainly on the West Coast. As of September 214, our total deposit volume ranked 13th overall in the United States. We plan to introduce more advanced services, strengthen our US dollar funding capabilities and improve governance with a view to be in the top ten banks in the United States in terms of scale and earnings. MUFG Report 215 33

Business Group Strategies Global Business Our Long-Term Vision Global Business Group Our Long-Term Vision Be the First Call Bank for Customers around the World Business Environment MUFG Strategy Sustained growth of the United States economy Relatively high growth of Asia Stronger and more complex financial regulations Accelerated globalization of our client companies Increased business chances in United States/Asia Growth of local companies and financial markets in Asia Global expansion in trade flows/money flows Developing business based on unique strength of each region Deliver high-quality services globally Enhanced group-wide products and services Projected Business Environment and Management Strategy We foresee continued growth of the United States as the world s biggest economic power. We also expect relatively high growth to continue in Asia. In this environment, MUFG aims to leverage its strengths to achieve growth. These include Bank of Tokyo-Mitsubishi UFJ s extensive global network and the strong local commercial banking operations of MUFG Union Bank in the United States and Bank of Ayudhya (Krungsri) in Thailand. We will exploit our unique strengths in each region as well as offering enhanced products and services across regions to deliver high-quality services globally. Nominal GDP Trend (21 nominal GDP set as 1) 3 25 2 Forecast China Asia emerging markets (excluding China) 15 United States Eurozone 1 Japan CY 21 211 212 213 214 215 216 217 218 219 22 Source: IMF World Economic Outlook April 215 34 MUFG Report 215

Medium-Term Business Plan (Fiscal 215-217) We implement business strategies for sustained growth and strengthen our business foundation in line with the basic policies set out below. 1 Challenge new business opportunities Net Operating Profit Plan* 483.1 billion * Based on managerial accounting basis to apply from fiscal 215 Forex rate applied to business plan is 115/US$ 2 +4% Pursuit of efficiency 3 Strengthen business foundation Non-interest Income from Transactions with Global Corporates* +24% 217. billion 27. billion FY 214 FY 217 (plan) FY 214 FY 217 (plan) Strategy Focus Strengthening business based on trade flows between Japanese and global corporates Expanding retail and SME business in North America and Thailand Strengthening products from a groupdriven perspective Enhancing transaction banking* 1 Strengthening O&D business* 2 Enhancing administration practice and establishing robust operational systems Promote non-organic strategy* 3 *1 Business, such as deposits, settlements and trade finance, that works through trade flows. *2 Origination and distribution business (loans, etc.) based on investor demands. *3 Growth strategy based on acquisition of assets and business through M&A, etc. Corporate Value Initiatives FOCUS Transaction Banking for Global Cash Management and Trade Finance Needs The global cash management and trade finance needs of companies are growing as globalization of company activities takes hold, ICT progresses, and world trade volumes increase. MUFG considers this transaction banking business (cash management, trade finance, etc.) as an important business strategy which can lead to the capture of non-interest income and foreign currency deposits. In May 215, Bank of Tokyo-Mitsubishi UFJ established a Transaction Banking Group to effectively coordinate related regional divisions and the related divisions of MUFG Union Bank and Bank of Ayudhya. We plan to develop products with the most advanced systems and to enhance marketing. Transaction Banking Example Cash management needs (cross-border, differing currencies) Need for early conversion of sales proceeds to cash Subsidiary Company (HQ, Regional HQ, etc.) Subsidiary Collection Subsidiary Sales proceeds Product Cash management service Company Trade finance US dollar Euro Renminbi Customer Customer Customer Example: Cash pooling service MUFG Example: Purchase of accounts receivable MUFG Report 215 35

Business Group Strategies Trust Assets Business We provide asset management and fund administration services: pensions, investment trusts, global asset management and investor services. Composition of Gross Profits* Gross Profit Breakdown 4% 172.2 billion * Gross profit total for five business groups Pensions 39% Investment Trust Management 26% Investment Trust Administration 1% Global Asset Administration* 15% Other 1% * Services provided under the MUFG Investor Services brand, custody and fund administration services, etc. Fiscal 214 Earnings Summary Gross Profits 172.2 billion Net Operating Profits 7.1 billion up 8% up 8% Gross profits rose 8% year on year ( 12.5 billion) to 172.2 billion while net operating profits were up 8% ( 5.1 billion) to 7.1 billion. We steadily accumulated assets under management in our main businesses including pension trusts, etc., leading to an increase in revenues. Gross Profits and Net Operating Profits We continue striving to provide distinctive products and services which meet customer needs. 2 15 1 75 Junichi Okamoto Senior Managing Executive Officer Group Head, Trust Assets Business Group 1 5 FY 212 213 214 5 25 Gross profits (left axis) Net operating profits (right axis) 36 MUFG Report 215

Pensions Pension Trusts and DC Pension Business Growing Steadily Mitsubishi UFJ Trust and Banking maintains the top-level domestic share in pension trust balances. The asset administration balance and investment product sales balance for defined contribution (DC) pensions both grew steadily. Pension trust balances from the public sector (cooperative societies, etc.) also increased. Investment Trust Decision on Merger of Mitsubishi UFJ Asset Management and KOKUSAI Asset Management We decided to merge the relevant Group companies to further enhance our asset management business. With our full product lineup and extensive sales network, we are in a position to meet our clients comprehensive asset management needs. Pension Trust Balance, DC Pension Administration Balance, and DC Pension Investment Product Sales Balance Trillions of Yen Trillions of Yen 2 16.5 trillion 5 14.7 trillion 15 4 2.8 trillion 3. trillion 1 3 1.7 trillion 1.9 trillion 5 2 Mar 31, 214 Mar 31, 215 Pension trust balance (left axis) DC pension administration balance (right axis) DC pension investment product sales balance (right axis) Investment Trust Management Balance and Investment Trust Administration Balance Trillions of Yen 5. trillion 18 41.9 trillion 12.9 trillion 11.6 trillion 12 Trillions of Yen 5 4 Corporate Value Initiatives 6 3 Mar 31, 214 Mar 31, 215 Investment trust management balance (left axis) Investment trust administration balance (right axis) Global Acquisition of Overseas Fund Administration Company Meridian Holdings Limited We acquired Meridian Holdings Limited in order to increase our competitiveness and scale in the fund administration market where rapid growth is anticipated. The acquisition was made through Butterfield Fulcrum Group (overseas fund administration company made into a subsidiary in fiscal 213, currently Mitsubishi UFJ Fund Services). Overseas Asset Administration Balance Trillions of Yen 1 TOPICS Adoption of the Japanese Stewardship Code The asset management companies in the MUFG Group (including Mitsubishi UFJ Trust and Banking) have announced their adoption of the Japanese version of the Stewardship Code framed by the Financial Services Agency. The Code aims to encourage a constructive dialogue between institutional investors and the companies 75 5 25 8.1 trillion 93.9 trillion Mar 31, 214 Mar 31, 215 they invest in. Through this, the companies corporate value will be enhanced and their sustained growth will expand medium- to long-term returns to investment beneficiaries. The Code gives us the opportunity to promote further sustained corporate growth and to support the Japanese economy from the financial perspective. MUFG Report 215 37

Business Group Strategies Trust Assets Business Our Long-Term Vision Trust Assets Business Group Our Long-Term Vision Solidifying our Domestic Base while Becoming a Global IS (Investor Services) and AM (Asset Management) Player Business Environment MUFG Strategy Progressing trend from savings to investments in Japan Shrinking welfare pension fund, reform of pension system Increased global investment flows More sophisticated and diverse investment products Expanded domestic investment management needs Structural change of domestic pension market Global growth in asset management business Growth in alternative fund administration business Responding to structural changes in the Japanese market Expanding global IS (Investor Services) and AM (Asset Management) business with both organic and inorganic strategies while maintaining the Group s strong domestic business foundation Tap overseas growth Projected Business Environment and Management Strategy In Japan there is a shift from savings to investments and we forecast an expansion of asset management needs. At the same time we see structural changes in the Japanese pension market with the welfare pension fund shrinking and DC pensions growing. We project continued global growth in the overseas asset management business and high growth in the alternative fund asset administration segment. In this environment, MUFG will respond to the structural changes in the Japanese market while tapping into the opportunities for global growth. We aim to become a global IS (Investor Services)/AM (Asset Management) player. Forecast of Asset Management Business Asset Balance Trillions of US dollars 12 1 8 6 4 2 CY 24 27 212 22 (Forecast) North America Europe Asia Pacific Other Source: PwC Asset Management 22 Group-wide Investment Product Development Providing knowhow Researching products that will meet customer needs Offer investment products Mitsubishi UFJ Trust Investment Technology Institute Mitsubishi UFJ Trust and Banking Asset Management company Mitsubishi UFJ Kokusai Asset Management Sales company Bank of Tokyo-Mitsubishi UFJ Mitsubishi UFJ Trust and Banking Mitsubishi UFJ Morgan Stanley Securities Customer 38 MUFG Report 215

Medium-Term Business Plan (Fiscal 215-217) Driving growth through responding to structural changes in the domestic market while expanding overseas revenues Net Operating Profit Plan* 68. billion +13% * Based on managerial accounting basis to apply from fiscal 215 Forex rate applied to business plan is 115/US$ Foreign Investment Trust Balance US$123 billion 2.9 times US$353. billion FY 214 FY 217 (plan) FY 214 FY 217 (plan) Strategy Focus Global Expand global asset management and administration business through investment and strategic alliances Investment Trust Leverage strength of the new investment trust company to provide high-value-added services and core products for customers who are forming assets. Pensions Strengthen consulting and advisory functions in response to systemic changes Corporate Value Initiatives FOCUS Established Mitsubishi UFJ Kokusai Asset Management Aiming to Be an Investment Trust Company Chosen around the World On July 1, 215, Mitsubishi UFJ Asset Management Co., Ltd. and KOKUSAI Asset Management Co., Ltd. merged to take a new step forward as Mitsubishi UFJ Kokusai Asset Management Co., Ltd. The management vision of the new company is to always live up to our customers trust and act on their behalf in order to fulfill our fiduciary responsibility as an investment trust company, always provide value-added service that exceeds our customers expectations as a truly professional group and become the No. 1 investment trust company in Japan and a leading one in Asia that is chosen by customers around the world. We intend to build on the strengths that have been built up by both companies over their more than 5-year histories. We will refine our product development and investment capabilities, as well as the network of distribution partners (global sovereign and open) and customer support functions. Through this, we hope to make a contribution to both customer asset formation and the revitalization of the Japanese economy. We are deepening our product development, delivering wrap investment trust products like First Wrap and Smart Quality Open, which cater to customers medium- to long-term asset formation needs, as well as Internet-related index funds like emaxis. We sincerely request your continued support. Takashi Kanagami Mitsubishi UFJ Kokusai Asset Management President & CEO MUFG Report 215 39

Business Group Strategies Global Markets Business We promote market-related business (bonds, forex, equities, derivatives) and are responsible for Asset Liability Management (ALM)*. * ALM: Integrated management of liquidity risk and interest rate risk inherent in assets (loans, etc.) and liabilities (deposits, etc.) Composition of Gross Profits* Gross Profit Breakdown 14% 69.4 billion Sales & Trading 47% ALM, Others 53% * Gross profit total for five business groups Fiscal 214 Earnings Summary Gross Profits 69.4 billion Net Operating Profits 418.1 billion up 8% up 8% Gross profits rose 8% year on year ( 46.2 billion) to 69.4 billion. Net operating profits were up 8% year on year ( 31.4 billion) to 418.1 billion. Net interest income on bonds fell given the prolonged period of low interest rates; however, this was more than covered by securities trading profits amid high stock prices and low interest rates, and also by robust performance in sales and trading as the yen depreciated and stocks rose from summer. Our target is the creation of new synergies through the integrated MUFG Group and we aim to provide services that exceed customer expectations. Naoto Hirota Senior Managing Executive Officer Group Head, Global Markets Business Group Gross Profits and Net Operating Profits 8 6 4 2 FY 212 213 214 Gross profits Net operating profits 4 MUFG Report 215

ALM Net Interest Income Down but Investment Management Revenues Strong Interest rates trended low in fiscal 214 in Japan, Europe and the United States on additional monetary easing by BOJ, the falling oil price and the Greek crisis. As a result, the contraction in long-short spreads caused a decline in net interest income. On the other hand, equity trading profits were strong on the buoyant stock market and investment management revenues reached the highest level since MUFG s establishment. The market valuation of bonds also improved on lower interest rates, bringing some unrealized gains. Yen and US Dollar Interest Rate Trend % 4 Nikkei Average 22, (right axis) 3 19, 2 1 US dollar interest rate (left axis) 16, 13, Yen interest rate (left axis) March 213 March 214 March 215 Unrealized Gains or Losses on JGB and Foreign Bonds Available for Sale 1, 8 6 4 2 (2) 114.7 87.8 Mar 31, 214 Mar 31, 215 Corporate Value Initiatives JGB Foreign Bonds Sales and Trading Revenue Rising for Three Consecutive Years Volatility was extremely low in the first half of fiscal 214 on concerns over a potential hike in the United States Federal Fund Target Rate and various geopolitical risks such as Ukraine. However, customer transaction volume picked up from summer onward as the yen depreciated and on movement in various markets. Sales and trading revenues therefore rose. Sales and Trading Gross Profits 5 45 399. 4 355.2 35 461.* TOPICS * Not including Bank of Ayudhya Top J-MONEY Ranking for Ninth Consecutive Year As a result of positive feedback from customers, Bank of Tokyo-Mitsubishi UFJ was ranked first overall for the ninth consecutive year in the financial magazine J-MONEY s survey of the Tokyo forex market. FY 212 213 214 MUFG Report 215 41

Business Group Strategies Global Markets Business Our Long-Term Vision Global Markets Business Group Our Long-Term Vision Development of Optimal Group-Wide Formation of Market Operations; Enhancing MUFG s Brand Presence Business Environment MUFG Strategy Economic activity picking up, especially in Asia Corporate activity increasingly borderless Strengthened global financial regulation Money flows increasing, especially in Asia Diversifying customer needs More emphasis on financial regulations and compliance Group-wide operations to strengthen sales and trading Sophisticated balance sheet management spanning domestic/ overseas, foreign currency and yen operations Projected Business Environment and Management Strategy With economic growth and corporate activity picking up, especially in Asia, we expect to see an increase in crossborder commercial and money flows. Since the 28 financial crisis, financial regulations on risk management have become tighter. At the same time, higher compliance standards are required for markets business. Accordingly, companies are placing greater emphasis on personnel and system infrastructure to meet these regulations and standards. In this environment, MUFG s Group-wide ALM is establishing the control systems necessary for a Global Systemically Important Financial Institution (G-SIFI). We pursue Group-wide management of Bank of Tokyo- Mitsubishi UFJ and the domestic and overseas securities subsidiaries under Mitsubishi UFJ Securities Holdings with a view to strengthening our sales and trading business. We are also working to enhance MUFG s brand presence, especially in the domestic and Asian markets. Money Flows Increasing, Especially in Asia Asian economic growth Expansion of cross-border commercial and money flows 42 MUFG Report 215

Medium-Term Business Plan (Fiscal 215-217) We are pursuing the following strategy, in line with the basic policies below: 1. Strengthen sales and trading business 2. More sophisticated balance sheet management 3. Build system infrastructure to comply with regulations and enhance operational efficiency Sales and Trading Gross Profits* 495 billion +11% 55 billion Strategy Focus Group-wide management of Bank of Tokyo-Mitsubishi UFJ and Mitsubishi UFJ Securities Holdings sales and trading business Review of ALM management stance Strengthen Group-wide risk management; respond to global financial regulations Construct Group-wide market-related core systems Corporate Value Initiatives FY 214 FY 217 (plan) * Based on managerial accounting basis to apply from fiscal 215 Forex rate applied to business plan is 115/US$ FOCUS Enhancing the MUFG brand We aim for more competitive pricing and more attractive products and solutions for our customers as we integrate our forex and interest rate transaction flows and coordinate banking and securities functions. Meeting the needs and gaining the confidence of customers who range from corporations to institutional investors, we are working to enhance the penetration of the MUFG brand in global markets. Enhancing the MUFG brand Gaining the confidence of customers Group-wide management of sales and trading Price competitiveness Trading functions Price competitiveness Investors Attractive products Commercial bank Securities Attractive products Corporations Attractive solutions Customer base Heightened productivity Attractive solutions MUFG Report 215 43

Special Feature Becoming a Leading Financial Group in Asia The Mekong economic region,* with Thailand at its center, continues to experience rapid economic growth, even relative to the rest of the ASEAN region. MUFG acquired a majority stake in Bank of Ayudhya Public Company Limited, known locally as Krungsri, in December 213, and subsequently integrated the BTMU Bangkok branch into Krungsri. Through this integration we are developing a full-scale, comprehensive commercial banking business in the region. * The countries of the Mekong Delta region are Thailand, Vietnam, Myanmar, Cambodia, and Laos. Bank of Ayudhya (Krungsri) Sawadee (Hello) Branches are furnished using a uniform yellow color, Krungsri s corporate color, and customers are greeted by staff wearing uniforms of the same color. With a 7-year history, Krungsri is Thailand s fifth largest commercial bank. Providing a wide range of services to both retail and corporate customers, Krungsri boasts top-tier domestic market shares, particularly in consumer finance segments including personal loans, credit cards, and auto finance. At a Glance 658 branches 21, employees With 658 branches, mainly in Bangkok, and around 21, group employees, we provide a wide variety of financial services. 6 trillion Building on 7 years experience as a major Thai commercial bank, our total assets are 6 trillion, the fifth largest in the sector in Thailand. No. 1 We have top-tier performance in the Thai consumer finance segment, with number one positions in personal loans and credit card business. (As of March 31, 215) A Wide Range of Financial Services Credit Card Auto Hire Purchase and Leasing Personal Loan & Sales Finance Commercial Banking Securities Factoring Leasing Financial Highlights (Million THB* 1 ) FY 212 FY 213 FY 214 Gross Profit 61,188 68,275 7,76 Operating Profit 3,391 34,883 36,46 Net Income* 2 14,625 11,864 14,17 Total Assets 1,71,965 1,179,66 1,211,362 Loan Balance 83,8 943,52 1,12,761 Deposit Balance 687,159 764,5 837,556 Loan Portfolio *1 Reference: JPY3.69/THB (as of March 31, 215) *2 Attributable to equity holders of the Bank Total 4.6 trillion Micro Finance Asset Management Corporate 43% SME 17% Retail 4% (As of March 31, 215) 44 MUFG Report 215

Integration with BTMU Bangkok Branch BTMU Bangkok Branch was the largest foreign bank in Thailand, and was integrated into Krungsri in January 215. This has created a hybrid bank that offers higher value-added services utilizing Krungsri s solid operating base and local network in Thailand and MUFG s global network. For example, Krungsri can use its local network to provide Japanese companies developing businesses in Thailand with settlement services and business matching opportunities, as well as retail deposits, fund transfers, and partnered loans for those companies employees. At the same time, as Thai companies become more international, they can use MUFG s global network to access trade finance, global syndication structuring, and support for overseas business development, all through a single contact point. Becoming a Leading Financial Group in Asia With this year s launch of the ASEAN Economic Community (AEC), the Mekong economic region is seeing further advances by Japanese companies and the growth of local companies, and cross-border business in the region is expected to become increasingly active. MUFG is positioning Krungsri as the core of our Mekong business, to contribute further to our customers growth and the economic growth of the Mekong region, while also aiming to be Asia s leading financial group. Krungsri and BTMU Locations Ongoing Initiatives in the Market Cooperative Initiatives Business Matching Krungsri and BTMU organized a Business Matching Fair in Bangkok in September 214. The fair was attended by approximately 5 Japanese companies looking to sell Thai products and services or procure raw materials from Thailand, and approximately 8 Thai companies. Corporate Value Initiatives BTMU branch BTMU Representative Office Krungsri branch Krungsri JV Krungsri Representative Office Myanmar 655 branches in Thailand (3 outside Thailand) North 36 branches Central/ West 93 branches Laos North-East 86 branches Thailand East Bangkok 7 branches region 283 branches Cambodia Vietnam Krungsri Credit Card The number of tourists from Thailand visiting Japan has grown significantly in recent years, and MUFG is offering services to these customers using its comprehensive group strength and global network. One initiative enables holders of the Krungsri Credit Card to receive discounts or special offers when using their card at designated stores and restaurants in Japan that accept Mitsubishi UFJ NICOS credit cards. MUFG will continue to develop services going forward that allow Krungsri cardholders and Mitsubishi UFJ NICOS affiliates to enjoy mutual benefits. South 87 branches MUFG Report 215 45

Special Feature Strategic Alliance with Morgan Stanley Since the Fall of 28, MUFG and Morgan Stanley have collaborated to better meet the diverse needs of clients and to deliver best-in-class financial services and products. Morgan Stanley Office, Tokyo, JP Morgan Stanley at a Glance Morgan Stanley (NYSE: MS) is a leading global financial services firm providing investment banking, securities, wealth management and investment management services to corporations, governments, institutions and individuals. MS Contribution to MUFG Net Income Millions of US Dollars 4, 3, 2, 2,655 88.3 3,152 74.8 2,314 2. 15. 1. Founded: September 16, 1935 Number of Employees: 55,82 Network: 967 offices in 43 countries Total Assets: $82 billion Wealth Management Total Client Assets: $2. trillion Market Cap: $75.7 billion Website: www.morganstanley.com Twitter: @morganstanley As of December 31, 214 1, 36. 5. 213 214 215Q1 MS: Earnings applicable to common shareholders (left scale) (Fiscal year runs from January 1 till December 31) MUFG: MS contribution to net income (right scale) (Fiscal year runs from April 1 till March 31 in the following year) Morgan Stanley Headquarters in New York, USA Major Milestones of the Alliance October 28 June 29 May 21 March 214 MUFG made a $9 billion equity investment in MS Loan Marketing Joint Venture (LMJV) was established for promoting lending and capital markets services in the Americas Mitsubishi UFJ Morgan Stanley Securities (MUMSS) and Morgan Stanley MUFG Securities (MSMS) were founded in Japan Mitsubishi UFJ Morgan Stanley PB Securities Co., Ltd. (MUMSPB) was established 46 MUFG Report 215

Japan JV The Japan JV consists of three entities: MUMSS, MSMS, and MUMSPB. MUMSS and MSMS leverage MUFG s domestic institutional and retail client base and MS global reach for M&A advisory and equity and debt offerings, while MUMSPB delivers private banking services. Driven by the Japan JV entities, the financial results of MUSHD have increased. JV Structure Collaboration Cases in Japan MUFG MUSHD MUMSS 1% 6% Investment Banking Capital Markets Sales & Trading Retail Markets Business 22% 4% Morgan Stanley 49% MSMS 51% Capital Markets Sales & Trading Acquisition of Beam by Suntory Holdings MUMSS acted as exclusive financial advisor for Suntory Holdings in its approx. $16 billion acquisition of Beam. Global IPO by Recruit Holdings MS/MSMS/MUMSS acted as Joint Global Coordinator and Joint Bookrunner for both domestic and international tranches for the approx. 213.8 billion IPO for Recruit Holdings. Financial Results of MUSHD 12. 114.9 Corporate Value Initiatives 75% MUMSPB Private Banking 9. 6. 51. 41. 28.7 3. 29 214 Ordinary income Net income (Fiscal year runs from April 1 till March 31 in the following year) Global Collaboration The LMJV offers MUFG and MS clients a world-class lending platform. Since the LMJV s inception, MUFG and MS have jointly provided commitments for numerous transactions. Best Practice Sharing MUFG and MS exchange best practices in many nonbusiness areas consistent with our commitment to continuously im proving processes and responding to the changing environment. Collaboration Case in the Americas On March 4, 215, AbbVie Inc. announced its acquisition of Pharmacyclics Inc. for $2 billion. MUFG jointly committed with MS in financing AbbVie s bid on Pharmacyclics. Morgan Stanley advised AbbVie on the transaction. MUFG and MS jointly underwrote 1% of the bridge loan. Internal Audit Risk Management Regulatory MUFG Morgan Stanley Compliance Human Capital IT Sourcing Aiming for Further Development Through the Global Steering Committee, executive managers from MUFG and MS discuss possible areas for collaboration that benefit both MUFG and MS. MUFG and MS continuously seek the best strategic alliance appropriate for different clients and market circumstances. From left: MUFG Group CEO Nobuyuki Hirano with Morgan Stanley Chairman & CEO James Gorman MUFG Report 215 47